Wed, May 14, 9:00 PM (39 days ago)
**Nucor Corporation (NUE) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $7,830 million, down 4% YoY due to decreased average selling prices. - **Net Earnings:** $156 million, down from $845 million YoY, with a net margin of 2.0%. - **Earnings per Share (EPS):** $0.67, down from $3.46 YoY. - **Operating Cash Flow:** $364 million, down from $460 million YoY. - **Capital Expenditures:** $859 million, up from $670 million YoY. - **Debt:** Issued $1 billion in new long-term debt, used to redeem $1 billion in maturing debt. - **Liquidity:** Strong, with $4.06 billion in cash and short-term investments. **Segment Performance:** - **Steel Mills:** Decreased earnings due to lower selling prices and increased energy costs. - **Steel Products:** Decreased earnings due to lower selling prices. - **Raw Materials:** Increased earnings due to higher DRI facility profitability. **Trends & Uncertainties:** - **Market Conditions:** Decreased steel demand and pricing pressure. - **Operational Efficiency:** Increased energy costs and conversion costs. - **Future Outlook:** Expects earnings to increase in Q2 2025 across all segments. **Future Operations Impact:** - **Capital Projects:** Continued investment in sheet mill and NTS expansion. - **Debt Management:** Strong liquidity position and credit ratings support debt management. - **Dividends:** Declared a quarterly dividend of $0.55 per share. **Key Metrics:** - **Gross Margin:** 8%, down from 19% YoY. - **Operating Margin:** Decreased due to higher costs and lower selling prices. - **Return on Equity:** 3.1%, down from 16.2% YoY. **Risk Factors:** - **Market Risks:** Steel demand, pricing, and raw material costs. - **Operational Risks:** Equipment failures, business interruptions. - **Regulatory Risks:** Environmental compliance and trade policies. **Conclusion:** Nucor's Q1 2025 results reflect challenging market conditions and increased costs. However, the company maintains a strong liquidity position and expects improved earnings in the second quarter. Continued investment in capital projects and efficient debt management support long-term growth.